Create and manage Xero credit notes directly in ApprovalMax

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Returns, overpayments, discounts — they all lead to credit notes. Handled the wrong way, they can cause delays, errors, and audit issues — especially when approvals are scattered across emails or rely on manual entry in Xero.

By Dee Jones

4 min read •

June 10, 2025

If you're managing credit notes by email or entering them directly into Xero, you’re not alone — but you’re likely wasting time and leaving room for mistakes. Credit notes often get pushed down the priority list, but when teams delay or mishandle them, they quickly become a problem. Approvals go missing. Refunds are delayed. Month-end reporting gets harder than it should be.

That’s why you can now create credit notes directly in ApprovalMax — with the right controls from the start.

Create credit notes from scratch or generate one from an approved bill or sales invoice — no need to switch between tools or re-enter data in Xero.

Why a proper credit note workflow matters

Credit notes aren’t just paperwork. They affect your numbers — and your processes.
Whether you’re dealing with a returned product, an overpayment, or a discount, credit notes touch multiple parts of your business: finance, sales, customer service, and compliance. Without a clear approval process, the risk of errors and delays goes up.

In fact, a recent report showed that 59% of accountants make multiple errors each month — many linked to manual data entry and disconnected systems. Credit notes are no exception.

By managing credit notes in the same system as your other approvals, you reduce those risks and create a clear, auditable process.

Create credit notes from scratch

You can now create a credit note in ApprovalMax without needing to start in Xero. Just fill in the details, send it through your approval workflow, and once approved, it syncs to Xero automatically.

This removes the manual back-and-forth and reduces the risk of data-entry errors — especially when you’re working at pace around month end.

Speed things up with existing approvals

If a credit note relates to a bill or sales invoice that’s already approved in ApprovalMax, you don’t need to start from scratch. Just open the document, click ‘Add a Credit Note’, and relevant information like contact and account details pulls through automatically.

This helps you move faster, stay consistent, and avoid duplicating work across systems.

Keep credit notes under control with the right workflows

Credit notes follow your existing approval process in ApprovalMax — just like bills and purchase orders.

Separate workflows for AP and AR

Manage supplier and customer credit notes in distinct workflows, so each follows the right path.

Rules that match your approval policies

Route approvals based on amount, department, or other business criteria — helping you avoid bottlenecks and unnecessary delays.

Real-time visibility

See exactly who submitted and approved each credit note, and when. No chasing, no second-guessing.

Automatic audit trail

Every step is recorded for easy traceability during reviews or audits.

Once approved, each credit note is synced to Xero — no need to trigger a separate action or wait for a sync.

One platform, less friction

By creating and approving credit notes in ApprovalMax, you keep everything consistent and connected. It’s one less process to manage manually, one less risk to your reporting, and one more way to stay on track at month end.

See it in action

Watch our short video guide to see how easy it is to manage credit notes inside ApprovalMax — and how much time your team can save.

Dee Johns believes the most powerful words are 'Let me tell you a story.' Her passion for storytelling helps her create meaningful, customer-focused experiences while removing friction, so customers never feel the complexities of the org chart.